>> >> all right. when sales are weak, but earnings are strong, it can only mean one thing. a company continues to cut. is it time for shareholders to stop rewarding this and stop pushing for less cutting and more hiring.

breaking details of the charges in the bombing marathon. guess what? we're on par for the lowest dough close since march 27th. all the major averages have now alternated between weekly gains and losses for the past six weeks. based on that we should have an up week this week. still very early days. in all the current lumps and bumps we are seeing in the market? is this just a spring swoon? kind of like what we experienced last year? or is the market unsure which way to go from here? >> it's unsure which way to go but i think the spring swoon is probably just temporary. the number today was not particularly great. the fed still backstopping

everything. i'll tell you what i like. i like the way energy and materials are rebounding a little bit. here is something i'm a little concerned about. look here, ge was 23 on friday. now it's 25. tomorrow we're going to get three big names. they will all be reporting big multinaggal companies that make a lot of different things. that's why they're called mul multi-industry. this is the read on the global economy. there are certain stocks that people keep buying because they keep working and working?

this is the fab three. all of them are at historic highs. i tell you, they can do no wrong. >> that's the thing about momentum. one day there will be no more momentum. >> for your consideration, three pieces of information. according to rueteres, 62.3% of companies have reported earnings above expectations. which means you can mess around with earnings. you can't mess around with

sales. >> what the point here is when you start seeing a flattening of sales, people don't want to care until they want to. net impact, which we never talked about. up -- down 1%. you have got finally ask the question what's really going on with the business? these businesses are just flat lining. >> any sectors in glaring situations where they are missing on the revenue? >> i haven't seen the trend here. i haven't done a break down but i will tell you we are starting

to see this and it's what you have got to watch. what are those earnings that they are reporting? >> that's how we got this segment idea. you road in in a robe or a towel. i just got out of the shower. but he e-mails me and says -- >> apologies dear viewer. >> good grief. >> when i'm that engaged in what you're saying and talking about. >> i didn't know i was posting squawk box this morning. so that's the point of this screen. companies keep cutting, cutting, cutting.

we know. should we really be worried about rewarding this kind of behavior? let's bring in dean baker. in you run out of consumers, that's not a good thing. >> you're right. we don't ever want to send a signal that you should do unproductive things. i have never seen a firm that doesn't want to grow. that's what they are aiming for and they need to find the opportunity to do that.

and then there are forces at work that we can get into. >> here's the thing. is it realistic to think that shareholders are going to reward companies or stocks that are doing the right thing? >> maybe an issue about long term and short term. i'm not saying in in general that's the case. if companies don't see demand

they will not exband. the government has to generate that demand. >> dean, i disagree with the government creating the demand statement. if a company came out and said we can continue to cut and jack up earnings per share but we're going to hire 100 workers? we would work on it. report on it. don't we need to maybe change the tune about the way corporations think of society? >> oh my gosh. i know. it's too nice over the weekend. henry ford knew that 80 years ago. we value our workers we're going to make a commitment to our

workers. improve their skills and actually make that profitable, which i think some companies have done that. >> this is important to think about how firms deal with their work force in down times. it is a really critical issue. it is something that we have seen over recessions that have led to long term periods. the most important and most costly thing a lot of firms do is go out there and have to rehire and retrain and find the talented people. once they made that investment in their work forces, we want to find in down times ways they can

retain them. >> absolutely. creative thinking all around. thank you very much for joining us. >> first our question of the day is has apple lost its cool factor? a lot of people have tweeted in. you can tweet us your answer as well.

>> >> it has been one week since the boston bombings. one of the victims is laid to rest.

>> this video shows that he remained in the same spot for approximately 4 minutes. at some point he appears to look at his phone and maybe manipulating the phone. approximately 30 seconds before the first explosion he lifts his phone to his ear. seen reacting to the first explosion. virtually every head turns towards the east towards the finish line and stares in apparent bewilderment and alarm.

if they are not specifically charged with murder but charged with conspireing to use weapons of mass destruction to cause death. that would open the door for state charges but these federal charges do potentially carry the death penalty. all of this comes on a day that boston was starting to get back to business. we have seen people walking back to the streets. even there, they are starting to clean up. still, according to the boston area chamber of commerce. about 230 businesses remain affected and that day-long shut down may have cost upwards of a billion dollars in lost business activity.

>> is that because they don't feel like they have got quite enough to make it buttoned up? why would they leave that out? >> at least initially in the federal government. remember one of the things is a negotiating tool.

>> you know, when you look at this and we don't want to speculate about what defenses might be. >> that was a similar defense or explanation that he offered but it didn't really help him either. >> i would like to move on to what we were originally wanting to talk about but thank you very much for going off the cuff and answering the questions for us.

>> to the extent that companies have been reluctant to install the surveillance, i don't see a huge boom in it. >> at 2:15 eastern we will be observing a moment of silence. >> coming up next is the commodity bull run done. we're going to debate both sides

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>> >> they say has caused immense pressure on the gold market. hedge funds continue to bet on gold. they raised the long positions so that's a positive sign. didn't do so for crude oil. u.s. crude oil. they reduced the positions. . not only for u.s. oil prices but food prices as well. that has been good news for the u.s. consumer. part of the complex is really perplexing is copper.

>> thank you very much for the run down. let's dig deeper into the trade. joining us for a bull bear, partner ceo jack. a lot of people are saying the super psychle in commodities is dead. others are saying i'm using this route to buy. >> a lot of what they are saying when they are telling you. that i would hold. markets give you draw downs. this is an example of a draw down. we're getting what sharon is alluding to and that is the etf effect. commodities don't move like stocks but they are traded like stocks. futures traders love that type of volatility. moving the market. craving exaggerated moves. just like we saw in gold. is that the only effect? of course that strong dollar has got a lot to do with it. the demand side of the equation is not going away.

we are not seeing the 100 million people. all of that is important to keep in mind. >> and we must keep in mind that every has its own set of supply and demand fundamentals. what do you think is the greatest opportunity to buy. >> well, i think that copper is right now one of those commodities that is a screaming buy down around 3. anything under 3 you would start to sense some disinflationary pressure. i like crude oil anywhere between 85 and 90. i don't like natural gas. >> i got to jump in there. thank you so much for your time today. >> thank you. >> we have got some breaking news from d.c. the sec is charging the former president of office depot of insider trading.

>> ahead of merger info. the sec said he is a former president and chief operating office at home depot. they said he purchased 25,000 shares. he declines to comment. to resolve allegations that it bribes government officials in argentina. in argentina to obtain improper.

took place over a period of about five years. ralph lauren disclosed the incidents itself and part of the reason it decided not to prosecute in this case. the company did all the right things in this case and they say they are thrilled with the outcome. and there are new faces dealing with those issues today. former federal prosecutor have been named co--directors of, that's the first time they have had co-. >> apple has lost its cool factor. bny mellon combines investment management & investment servicing,

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>> as >> as you can probably see, all have now turned around and we're moving to the upside. we're actually down a little bit. the nasdaq was now performing now. all three were in the black. we have got microsoft today adding just over 4%.

>> that news first reported this morning by our own david faber. this would make it one of the top five. it's big, powerful. microsoft quietly is a seven month high. >> this is a downgrade. >> stocks down 2% here. they say the full year forecast recovery increased their view. >> given one of the last big vocal bulls.

this stock has doubled in the last few years. >> second largest. margins approved by about four%. because guar -- >> i know. it's used in this and that helped their margins. >> and we have six flags continuing to rock? >> let's see what that stock is doing. up 7.5% here. 32% revenue growth. first quarter attendance. it's a discretionary thing.

has apple lost its cool factor? what say you? >> the cool me trick is very, very tough. if you're cool you can't say you're cool and you're not cool any more. >> i don't think that cool factor is the problem. then you have got to look at the

retail strategy in places like india and brazil where apple has never really done a strong push. are they going to do a lower priced iphone? >> look. when they hit their biggest company in the history of the world mark, there was really no place to go extremely high quickly or a fall from grace. it's a perception problem. apple is known for it. >> john, you know what's not a perception problem? the stock is trading at nine times earnings. >> there is a lot going on.

there is probably a lot of profit taking going on. microsoft has been lackluster for about ten years. they are having a lovely spirit now. >> is happenle still cool? >> go to apple's web side. >> if siri doesn't know, how could we possibly know?

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>> welcome back to the >> welcome back to the earnings squad. we dissect the earnings and help you trade the stories you may have missed. today we're joined by kate. let's start off with the score card. this week kicks into high gear with the three day earnings blips that will give us a look

at nearly every nook of the economy. the stock hitting a four-year high. this has been a company that has been. >> i think one buffer for the scott. just to review, the estimates for tomorrow, $2.04 a share. they have been outspoken. starting in january. >> i should point out that when the company talks about

sequester, they keep saying you can't sequester international. they expect it to grow. that's the sort of buffer. >> a top executive. but the real impact for a lot of these defenses companies are secures. what are we paying for? >> we are also watching shares of coach coach is coming out with earnings before the bell. missing fashion trends. i finally got on -- i don't know whether you carry a man bag or not.

>> that whole story has changed. >> but my husband bought me a beautiful coach tote for christmas. there was good stuff in the store. >> there are still so many coach stores. not all of them have people in them. >> absolutely. >> it has certainly got brand recognition. you hit it on the head in terms of global lifestyle brand. other lines of business outside of accessories like trench coats. >> and commodities across the board. >> what about new fashion, new creative teams and spring in your step and you give new life to something that was a staying brand.

>> certainly listen for coach tomorrow and what they say about the global consumer, particularly in china. we'll see you tonight at 5:00. street signs continue right after this.

>> all right. welcome back to "street signs," everybody. a reminder that we will be hosting a special report in just a few moments. the rational is the moment of silence. all of america will take it at 2:50 p.m. eastern time today. right now, let's go to scott kohn who remains in massachusetts. the charges were unsealed and filed against him just about an hour ago. i know it has been a little bit of a hectic situation reading through the charges. can you recap what exactly has he been charged with? >> he has been charged in a two

count criminal complaint, brian. with conspiracy -- conspiracy to use weapon of mass destruction and malicious destruction of property, resulting in death. the complaint, the charges do carry the death penalty under federal law. it might include the killing of the mit. you can see around me in boston's back bay, people gathering around for the moment of silence. it is hard to believe that it has been a week since what has transpired in that week since the two bombs went off at the end of the boston marathon last month.

>> run us through what the next step will be and when. >> what we had today is in tsarnaev's hospital bed, an initial appearance, which is typically what happens in federal court where the defendant is advised of his rights. bail would be set by a magistrate. and down the road now next month there will be a probable cause hear i hearing there is also the potential that he could decide to enter a plea to the charges. we will see how that goes. he will be represented by federal public defenders. he will get representation within the u.s. justice system. he has been read his rights just by the nature of this initial appearance so he is going through the justice system as opposed to, as some have called for, being tried as an enemy

combatant, which is not an option. >> this is an nbc news special report. here is brian williams. >> good day from new york. it's hard to believe that at 2:50 p.m., it will be one week exactly since the marathon bombing in the city of boston. and we'll go there for commemoration, a moment of silence to mark the exact one week anniversary. first the development today. we now know the charges against this surviving bomber. pete williams who has been covering from the start has looked at the federal complaint. >> he faces two bombing charges, brian, both of which could carry the death penalty. and in terms of the facts that are in the criminal complaint, they say that video shows dzhokhar tsarnaev planting the bomb. they say he fails to react when everyone in the crowd does. then he walks away before the

second bomb goes off. it also says that the bombs at the marathon on monday are similar to the one that they found at the watertown shootout in the car that the two had hijacked. in tsarnaev's dormroom they found a blackjack et and a white hat like those seen in the photographs. and also bbeebees. he had a brief initial appearance before a magistrate today in his hospital room and the judge found him to be alert and able to understand the charges. we also understand, brian, that federal authorities had been questioning him in a way that he is, you know, not in good shape. he has a bullet wound in his throat. he can't talk. but they are asking him questions back and forth in writing and with nods. it has started. >> pete williams following the investigation in washington. and now to boston. we're going to take you through

a number of live pictures we have as we're now 15 seconds away from the commemoration, the moment of silence. you will see various scenes through the city of boston. most should be

. >> emotions still raw. the moment needs to further explanation, really. marking -- hard to believe it's been a week. marking the moment a week ago when terrorism revisited our nation. back on our radar and, of course, the loved ones were stolen from so many families. one suspect dead, one suspect still living in a hospital in boston. as you see, the people of boston might as well have been yesterday. cities and towns throughout eastern massachusetts, all the way to, as you saw, the floor of the new york stock exchange. and we're told the president is marking the moment inside the white house where the flag, as they do across the country,

remains at half staff. much more tonight, especially on the investigation, when we join you for "nbc nightly news." the latest, of course, on this nbc station. i'm brian williams, nbc news, new york. [ beeping ] ♪ [ male announcer ] we don't just certify our pre-owned vehicles. we inspect, analyze and recondition each one, until it's nothing short of a genuine certified pre-owned... mercedes-benz for the next new owner. ♪ hurry in to your authorized mercedes-benz dealer for 1.99% financing during our certified pre-owned sales event through april 30th.

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[ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪ transit fares! as in the 37 billion transit fares we help collect each year. no? oh, right. you're thinking of the 1.6 million daily customer care interactions xerox handles. or the 900 million health insurance claims we process. so, it's no surprise to you that companies depend on today's xerox for services that simplify how work gets done. which is...pretty much what we've always stood for. with xerox, you're ready for real business. allis is all this talk of delays at the airport just sequestration fearmongering or a real problem? all right, hampton pearson. it's no better there in d.c. than it is in new york city and

this area. but if we hear warnings of delays is this just really like, hey, we need you to call your congressman or are these real problems? >> well, the airlines and airlines pilots association think it's all too real. as a matter of fact, they've gone to court and they're suing the faa to try and block the cuts, claiming basically the combination of furloughing 15,000 air traffic controllers over the next six months plus the possibility of ground stops at busy hubs could delay about 7,000 flights a day and create worst case scenario delays at major hubs of up to four hours. they argue the faa has other ways to cut about $650 million out of what is a $16 billion department of transportation budget. >> the faa has and should have exercised the discretion not to furlough air traffic controllers who never in the history have been furloughed before during any budget sequestration, any

shutdown of the faa or anything like that. >> even the white house today said this was never supposed to happen. brian? >> pick it up from there. hampton pearson, thank you very much. let's stay with the theme. you know what, airline stocks have actually been on a tear. the question now is whether or not the sequester could end that run. phil lebeau is here to preview the airline earnings ahead this week. i'm also wondering what they are going to say in their commentary about all of this issue. >> mandy, there's going to be plenty of commentary. we've already heard from some of the airlines they do expect sequestration to have some impact, probably not in the first quarter but definitely in the second quarter. delta is reporting before the bell tomorrow morning. now, a couple of weeks ago delta came out and said, listen, there will be an impact on earnings because of sequestration. although they didn't say how much. again, that's likely in second quarter. tomorrow we're also going to be hearing from us airways. they are expected to earn 28 cents a share in the first quarter. and, finally, hawaiian airlines will also be reporting tomorrow.

again, a profit expected from hawaiian and really across the board we're expecting a profitable first quarter which is unusual in the airline industry. it typically is the slowest quarter of the year. one thing to keep in mind, the commentary tomorrow in particular, not just from delta, but from the other airlines over the course of the next couple of weeks when they report, in particular you want to pay attention to the following airlines. you've got delta. you've got united. you've got jetblue. why are they important? these airlines because of the hubs where they are at, they're already congested, busy hubs. and they're going to notice an impact as the air traffic controller furloughs go through. so if you're dealing with o'hare and united airlines, you're going to see some delays there. already if you go on these websites, mandy, they're putting it up there saying, you can expect delays because of sequestration. >> but the faa's budget's gone up 13% since 2006 and flight volumes have gone down. >> but the argument on the flip